9.28.15 - STOCKS FACE 'WALL OF UNCERTAINTY'
Gold last traded at $1,131 an ounce. Silver at $14.53 an ounce.
NEWS SUMMARY: U.S. stocks were dragged lower Monday by housing data, China fears, global growth worries and Fed uncertainty. Meanwhile, the U.S. dollar traded lower and precious metal prices eased back.
Debt Fears Sink Glencore -Wall Street Journal
"Investors pounded shares of mining giant Glencore PLC on Monday, sending it to a new all-time low amid fresh concerns that persistently low commodity prices will cripple its debt-laden balance sheet. The Swiss company’s stock has collapsed in recent months despite a series of moves designed to bolster investor confidence and ease its debt burden....Monday’s plunge, in which Glencore tumbled 31% at one point to a record low of 66.7 pence, put its stock about 47% below the price investors paid just weeks ago in the stock offering." Glencore is the latest example of what happens when a commodity slump is mixed with over indebtedness, as the old saying goes ... "When your out-go exceeds your in-come, your up-keep becomes your down-fall." Before the next debt crisis erupts, businesses and individuals should; reduce debt, increase savings and diversify into real money - Gold & Silver!
U.S. Stocks Face "Wall of Uncertainty" -CNBC
"All three major averages traded in correction territory, or more than 10 percent below their 52-week highs. 'I think the biggest focus remains Fed uncertainty. You hear Dudley saying, uncertainty about the outlook can't be eliminated,' said Peter Cardillo, chief market economist at Rockwell Global Capital. 'The Fed has created this wall of uncertainty even as we get good economic data,' he said. New York Fed President William Dudley said the central bank will likely raise rates this year, Dow Jones reported. He noted international events have created uncertainty about the U.S. outlook." Fed-induced economic uncertainty is part of the government's zero interest rate policy (ZIRP) strategy explained in The Biggest Bank Heist in History.
U.S. Supports China's Reserve-Currency Bid -Bloomberg
"The Obama administration took a step toward backing China’s bid to have the yuan recognized as a global reserve currency, as the U.S. softened its insistence that the Chinese implement financial reforms to win support. The International Monetary Fund is reviewing whether the yuan should be included in its Special Drawing Rights, a basket of reserve currencies used by the lender as a unit of account. The shift in the U.S. position follows the administration’s failed attempt to prevent allies from joining the China-led Asian Infrastructure Investment Bank earlier this year, a strategy that was faulted by former policy makers including ex-Treasury Secretary Henry Paulson." Why in the world is the U.S. supporting China's dream of replacing the U.S. dollar as the world's reserve currency? Read What's Next For The Dollar?
Income Rises At Slowest Pace In 5 Months, Savings Rate Drop -Zero Hedge
"Personal income rose at 0.3% MoM in August, the weakest growth and biggest miss since March's tumble. At the same time spending rose 0.4% MoM, slightly more than expected. Of course this relative shift means the savings rate declined from 4.7% to 4.6%, which is to be cheered by economic models the emphasize spending over saving."
9.25.15 - DOW CHEERS FEDSPEAK, GDP
Gold last traded at $1,145 an ounce. Silver at $15.11 an ounce.
NEWS SUMMARY: U.S. stocks rebounded Friday after U.S. GDP was revised upward to 3.9% and Fed chair Janet Yellen boosted the odds of an interest rate hike by year-end. Meanwhile, the U.S. dollar inched upward and precious metal prices eased back from 4-week highs.
Global Markets Rebound on Yellen Speech -Wall Street Journal
"Global stocks climbed Friday after Federal Reserve Chairwoman Janet Yellen reassured investors that the U.S. economy is strong enough to support an interest-rate increase. In a speech Thursday at the University of Massachusetts in Amherst, Ms. Yellen laid out a detailed case for raising interest rates later this year. The gains came after a reading on second-quarter economic growth was revised higher. Gross domestic product grew at a 3.9% annual rate in the second quarter, the Commerce Department said Friday. The agency had previously estimated a 3.7% expansion." Will the Fed really raise interest rates this year? Read The Biggest Bank Heist in History.
Fed just threw kerosene on the fire -CNBC
"The Federal Reserve has lost credibility by failing to deliver a clear message during its interest rate policy announcement last week and because Chair Janet Yellen contradicted its decision in her speech, RBC Capital Market's Jonathan Golub said Friday. 'They took an unsettled situation and they just threw kerosene on that fire through all of their statements,' RBC's chief U.S. market strategist told CNBC's 'Squawk Box.'....During her speech Thursday at the University of Massachusetts at Amherst, Yellen said it would be appropriate to raise the Fed's benchmark fed funds rate 'sometime later this year.'"
John Boehner Will Resign From Congress -New York Times
"Speaker John A. Boehner, under intense pressure from conservatives in his party, will resign one of the most powerful positions in government and give up his House seat at the end of October, throwing Congress into chaos as it tries to avert a government shutdown. Mr. Boehner, who was first elected to Congress in 1990, made the announcement in an emotional meeting with his fellow Republicans on Friday morning....Most recently, Mr. Boehner, 65, was trying to craft a solution to keep the government open through the rest of the year, but was under pressure from a growing base of conservatives who told him that they would not vote for a bill that did not defund Planned Parenthood."
9.24.15 - SAFE HAVEN GOLD SHINES!
Gold last traded at $1,153 an ounce. Silver at $15.13 an ounce.
NEWS SUMMARY: U.S. stocks fell for a third day Thursday amid Caterpillar's dismal outlook and job cuts. Meanwhile, precious metal prices lurched to 4-week highs on safe haven buying and a weaker U.S. dollar.
Commodities pain spreading, Caterpillar retrenches -CNBC
"Caterpillar is among a long list of companies reeling from the pain of plunging commodities prices, the aftermath of the supercycle that once was a boom for commodities producers and the companies that supplied them. Sensitive to both energy and mining, Caterpillar warned Thursday that its revenues will be $1 billion less than the $49 billion expected this year, and it sees another decline next year. As a result, it announced further restructuring steps to cut $1.5 billion in annual costs, and said it could eliminate as many as 10,000 workers by 2018." For over 30 years Swiss America has repeatedly said Gold is not a commodity, nor an investment. It is the world's most trustworthy store of value, time and labor - the ultimate numeraire. This helps to explain why commodities are falling yet gold prices are rising.
Traders Seek Haven From Falling Stocks -Wall Street Journal
"Gold prices surged higher on Thursday as some investors sought to gird themselves from disappointing economic data and declines in U.S. stocks by purchasing the haven asset....Investors started tiptoeing into the gold market at the start of the U.S. trading day after Commerce Department data showed U.S. durable goods orders fell a seasonally adjusted 2.0% in August. The data suggest that the strong dollar and economic weakness overseas may be sapping demand for U.S. goods." Find out why gold is the ultimate safe haven, read The Timeless Truth About Gold & Silver.
The Sooner the Fed Gets Unstuck, the Better -Real Clear Markets
"Last week the Fed announced it would once again delay liftoff from its zero interest rate policy. During her press conference, Fed Chair Janet Yellen noted that "[the housing market] remains very depressed."....Has the Fed missed the housing liftoff? July existing home sales were at a seasonally adjusted annual rate of 5.6 million, the highest level since the end of the peak of the housing bubble in December 2006....Since 1975 we have seen three other instances of real home price growth, and each ended with a painful price correction. Monetary policy is a blunt instrument. It is ill-suited for fine tuning asset allocation decisions among existing homes, new homes, and new rental units, much less among regions....The longer the Fed is stuck on zero, the greater the pricing distortions that will result. The Fed needs to get unstuck - the sooner the better." Will the Fed raise interest rates this year? Read The Biggest Bank Heist in History.
In cash we trust — abolish it and you invite tyranny -Financial Times
"Central banks have never been so powerful, yet their ability to set the cost of borrowing, put limits on bank lending and poke their noses into every corner of the financial system is insufficient for some. Now the Bank of England’s chief economist wants to abolish the cash in your wallet and charge you for a digital equivalent....Attach a gloomy assessment of the efficacy of quantitative easing and other means of stimulating spending, and his answer is to get rid of cash and replace it with a digital wallet on which negative interest rates can be charged. The case might be logical, but that is not a sufficient condition for public policy. Mr Haldane thinks banning cash and switching to digital money would be a 'great technological leap forward' but his words have more than an unfortunate rhetorical echo of Maoist China." Craig Smith writes, "If they abolish cash, the last line of independence and privacy will be gold, the ultimate currency." To better understand why governments worldwide have declared a "war on cash" read THE SECRET WAR.
Pope Francis Calls for Distribution of Wealth -Fox Business
"Pope Francis addressed Congress Thursday morning, the first time a Pope has ever done so. In his historic inaugural visit to the U.S., Francis has broached politically divisive topics including climate change, poverty and marriage....Francis, who has been critical of capitalism, said, 'The fight against poverty and hunger must be fought constantly and on many fronts, especially in its causes. I know that many Americans today, as in the past, are working to deal with this problem.' He went on to say that the way to achieve an inclusive and sustainable economy is to create and distribute wealth....When discussing the 'golden rule' of 'do unto others as you would have them do unto you,' Francis said that life should be protected at all stages; a direct call to pro-life supporters."
9.22.15 - A FED-INDUCED ECONOMIC NIGHTMARE
Gold last traded at $1,124 an ounce. Silver at $14.75 an ounce.
NEWS SUMMARY: U.S. stocks traded sharply lower Tuesday, pressured by continued anxiety over slowing global growth. Meanwhile, the U.S. dollar rose and precious metal prices modestly retreated.
Half in U.S. Continue to Say Gov't Is an Immediate Threat -Gallup
"Almost half of Americans, 49%, say the federal government poses 'an immediate threat to the rights and freedoms of ordinary citizens,' similar to what was found in previous surveys conducted over the last five years. When this question was first asked in 2003, less than a third of Americans held this attitude....The remarkable finding about these attitudes is how much they reflect apparent antipathy toward the party controlling the White House, rather than being a purely fundamental or fixed philosophical attitude about government." In today's economic world which requires public confidence to sustain growth, What's Next For The Dollar?
Yellen Trapped in Her Worst Nightmare -Armstrong Economics
"Janet Yellen has inherited a complete nightmare....The Fed is caught between domestic policy objectives that dictate that they MUST raise rates or they will bankrupt countless pension funds internationally and emerging markets will go into default because commodities have collapsed and they have no way of paying off this debt that has risen to about 50% of the U.S. national debt....There appears to be no hope for the Fed; they will be forced to raise rates only when they see asset inflation in equities. Then they will have no choice. This is the worst possible mess and the longer they wait to normalize interest rates, the worse the total crisis will become for they will have zero control over the economy. Once that is seen, holy hell will break loose." Now is the time to prepare for the financial worst. Wall Street has been playing Musical Chairs with the Fed for six years now. Mr. Smith and Ponte explain what happens when the Fed music stops in The Biggest Bank Heist in History.
Look out below — where stocks could bottom -Paulson/CNBC
"Stocks appear vulnerable to test and maybe even break the lows seen toward the end of August, closely followed market watcher Jim Paulsen said Tuesday, as the Dow Jones industrial average plunged about 200 points on the open. 'I think at a minimum we go challenge the old lows we had set on the initial crash,' the chief investment strategist at Wells Capital Management told CNBC, referring to Aug. 25 when the Dow sunk to 15,666 and the S&P 500 fell to 1,867....Reacting to the Federal Reserve's decision last Thursday not to hike interest rates for the first time in nine years, Paulsen said he wished the central bank made a move."
Commodities Under Pressure Amid Equity-Market Selloff -Fox Business
"The dollar touched an almost two-week high against a basket of major currencies after the comments revived expectations that U.S. interest rates will still be hiked later this year. 'We're still in a situation where investors are going to wait and see when a hike will happen,' Capital Economics analyst Simona Gambarini said. 'There's going to be a bit of volatility around precious metals until the Fed eventually does hike rates.'....'Gold still has these safe-haven characteristics on a day like today, when everything that has a risk tag on it is just going down - equities are going down, cyclical commodities are going down,' Julius Baer analyst Carsten Menke said." We agree that gold remains the smartest way to preserve wealth today. Why? Read The Timeless Truth About Gold & Silver.
US issues warning to China before presidential visit -The Hill
"The White House is issuing a stern warning to China about its incursions and meddling in cyberspace, the South China Sea and global currency markets, days before China's President Xi Jinping comes to the White House. National Security Advisor Susan Rice on Monday said that the U.S.’s objections to Chinese policy on multiple fronts are at the fore of the conversations between the globe’s two most powerful nations, and would be at the top of President Obama’s agenda during talks this week. 'We want China to advance market reforms that level the playing field for foreign firms, reduce barriers to trade and unleash its massive economic potential,' she said....Xi arrives in the U.S. for a six-day tour on Tuesday, starting with a visit to Seattle. He will meet Obama for a private dinner at the White House on Thursday, followed by a formal state visit on Friday."
NOTE: Swiss America will be closed Wednesday in observance of Yom Kippur.
9.21.15 - ECONOMIC UNCERTAINTY TAKING A TOLL
Gold last traded at $1,132 an ounce. Silver at $15.22 an ounce.
NEWS SUMMARY: U.S. stocks traded mixed Monday following a drop in existing U.S. home sales of 4.8% last month. Meanwhile, the U.S. dollar rose amid expectations the Fed will lift interest rates by year-end, which pressured precious metal prices.
Americans worry more about their finances than anything else -Marketwatch
"The 2015 'Life + Money Survey' from GoBankingRates.com, released this month, showed that Americans think more about money on a daily basis than about anything else, including their health and fitness or their love lives. One in five Americans fears living paycheck-to-paycheck for the rest of their life, with almost as many people worried about being in debt forever. Never being able to retire was a common worry for more than one in seven survey respondents." What's Next For The Dollar? explains what's about to happen to the buying power of paper currencies worldwide. Find out how prudent investors and nations are diversifying their portfolios to reduce risk and strengthen their survivability in today's uncertain world.
Fed Does Nothing, Markets Retreat - Fox News
Bank and financial stocks fell back into bear territory last Friday following the Fed's statement. Host Neil Cavuto asks Swiss America Chairman Craig Smith what can we glean from the market's reaction. Mr. Smith said he agrees with Charlie Gasparino that this was the most pathetic Fed Q & A he has ever seen, saying, "Janet Yellen looked so over her head. She sent mixed signals, bringing horrible uncertainty to the markets...We needed a Fed rate hike to show some confidence in this economy....All of this uncertainty is taking a toll." Watch Now.
The Fed has to deal with its own zombie apocalypse -CNBC
"The Fed needs to keep rates low both for government debt and the corporations that now have $12.5 trillion in debt. Among the prime beneficiaries of zero interest rates have been low-rated companies that have been able to borrow money at rates often in the 5 to 6 percent range. A move to higher rates, even a small one, could have outsized impacts on those bad balance sheet companies. That puts the Fed in a bit of a Faustian bargain with issuers and holders that has become hard to break."
Gold - The Once and Future Currency -Rickards/Daily Reckoning
"It’s unfortunate that markets are now reduced to reading Janet Yellen’s mind. But that’s what happens after seven years of market intervention and central planning by the Federal Reserve....Using my system, which combines complex dynamic systems analysis with unique access to relevant information, we’re able to draw some useful inferences about the future path of gold prices. Our estimate is that gold has now found a bottom and is poised to move steadily upward from current levels....For those who are fully allocated in physical gold (I recommend about 10% of investible assets), there’s nothing more to do on that front. You can just sit tight and enjoy the ride. For those who do not have the recommended allocation to physical gold, this is an attractive entry point and a chance to top up your allocation at the best prices in six years....We’ve identified three factors that well explain the gold price dynamics. These three factors are real interest rates, dollar strength and central bank intervention....All three factors are pointing toward a reversal of recent trends and momentum toward conditions that favor higher gold prices." We agree with Jim Rickards, gold's future is very bright, learn more by reading The Timeless Truth About Gold & Silver.
In 10 years, banking will look like a sci-fi film -Telegraph
"The next decade could easily see scenes from sci-fi movies come true in the banking industry....Indeed, carrying phones and watches is not just a means of contacting your bank or proving your identity it could replace debit and credit cards altogether....The balance between convenience and surveillance could be put to the test most dramatically when your own white goods start spending on the credit card. 'Imagine when all devices, from your fridge, to your car, to your washing machine will have a SIM in it , or another form of networked connectivity,' said Anne Boden, chief executive of startup mobile-only bank Starling." DON'T BANK ON IT! authors Craig Smith and Lowell Ponte explain 20 major banking risks in the future, such as ...“This dawning age of the 'smart house' will be possible because more and more appliances, door locks and other things are becoming available with computer brains built into them…. The danger is that anything with such computer chips and interactivity can be hacked. If you can remotely tell your back door to lock, a sophisticated hacker can command your back door to unlock.” (Pages 28-29)
9.18.15 - FED SPOOKS STOCKS, BOOSTS GOLD
Gold last traded at $1,137 an ounce. Silver at $15.16 an ounce.
NEWS SUMMARY: U.S. stocks fell sharply Friday amid fears over global growth following the Fed’s decision to leave interest rates at zero. Meanwhile, precious metal prices shot upward on bargain hunting and safe haven buying despite a firmer U.S. dollar.
Gold Hits Two-Week High After Fed Decision -Fox Business
"Gold rose to a two-week high on Friday as the Federal Reserve's decision to leave U.S. interest rates unchanged weighed on the dollar and added to uncertainty over the timing of the first rate hike in a decade....Thursday the dollar slumped to a three-week low against a basket of major currencies, while European shares came under pressure from the Fed's downbeat comments on the state of the economy....The Fed kept interest rates unchanged on Thursday in a bow to worries about the global economy, financial market volatility and sluggish inflation at home." In The Timeless Truth About Gold & Silver Swiss America Chairman Craig Smith writes, "Gold and silver are respected and accepted worldwide because they're pure, liquid, debt-free assets which can still be held privately in your own two hands. Owning physical gold and silver coins today also positions you to preserve your wealth for a lifetime, as well as for the next generation."
The Fed Stands Pat -- And So Will The Economy -Forbes
"The Federal Reserve’s announcement that it will continue to suppress interest rates is going to harm the economy. We won’t be breaking out of the rut we’re in, which is bad news for us and the rest of the world. Here’s why. For markets to work, you need accurate pricing. Most everyone knows that price controls hurt the production of goods and services. Rent controls, for instance, may be a boon to those who have below-market-price apartments, but those rent restrictions hurt the building of new rental units. After all, who wants to build to lose money?. The same principle works in credit markets. Under the Fed’s zero-interest-rate policy (ZIRP) banks couldn’t know the real price they should charge for loans, so they’ve made fewer of them to small-business borrowers and startups than they traditionally would have." As we have stated repeatedly, zero rates = zero growth for the foreseeable future. In our White Paper on the subject The Biggest Bank Heist in History, Craig Smith and Lowell Ponte conclude, "On the day that people have their own independent solid money again, the Federal Reserve and all its schemes like ZIRP can be bypassed on our road back home to America. The biggest bank heist in history will be over, and you will no longer be paying the price for Banks and Government getting gain from your pain."
FED Hawks, Doves & Chickens -Zero Hedge
"Ms. Yellen and her colleagues probably fear nothing more than getting blamed for a financial debacle and an economic bust on account of 'tightening too early'. And so they have opted to continue to let the unnatural situation fester, in which we are all supposed to pretend that the cost of capital should be rationally set at zero. In short, they are neither hawks nor doves – they are chickens....There was one hawkish dissident, namely from Richmond fed president Jeffrey Lacker. This is no surprise; he was definitely most likely to dissent with a continuation of ZIRP. What surprises us the most about Mr. Lacker is why he hasn’t resigned a long time ago, given that he often expresses quite level-headed views....The Fed remains in a box of its own making. We are beginning to doubt whether central bank will ever be hike rates again voluntarily."
America's Eroding Economic Freedom -CATO
"As recently as 2000, the United States had the second-freest economy in the world, trailing only Hong Kong. But throughout the Bush and Obama years, we have slipped further and further behind. Last year, we fell out of the top 10, ranking just 12th overall. And this year, we have fallen all the way to 16th....Among the countries we are not freer than are some that you might expect, like Hong Kong, Singapore, Switzerland, and Chile, but also some that we don’t normally associate with free markets, like the United Arab Emirates, Mauritius, Jordan, Georgia, and Qatar....What accounts for the U.S. decline? Perhaps the biggest factor is the continued growth of government." Indeed, BIGGER government = less economic freedom. Former Fed Chairman Alan Greenspan explained this important truth a half century ago in his essay Gold & Economic Freedom, saying Gold and economic freedom are inseparable...The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit."
9.17.15 - FED: MUCH ADO ABOUT NOTHING
Gold last traded at $1,127 an ounce. Silver at $14.98 an ounce.
NEWS SUMMARY: U.S. stocks traded mixed after the Federal Reserve announced they would hold interest rates at zero for now, but might raise rates by year end. Meanwhile, the U.S. dollar fell and precious metal prices rose on the Fed news.
FOMC: Much Ado About Nothing -Ritholtz
Life’s but a walking shadow, a poor player that struts and frets his hour upon the stage. And then is heard no more: it is a tale told by an idiot, full of sound and fury, signifying nothing. –Macbeth.
Sept. 17 is finally here, and one can’t help but be reminded of Shakespeare’s play, 'The Tragedy of Macbeth.' The general Macbeth receives a prophecy from a trio of witches, leading to tragedy and civil war. The quote above, perhaps Shakespeare’s most existential, suggests life is meaningless. It is hardly an exaggerated metaphor for the useless posturing by the punditocracy across the land in the days, weeks, months even years leading up to today’s Federal Reserve announcement on interest rates - or not. Whether the Fed moves the rate from its 0-0.25 percent band to a pure 0.25 percent rate, is inconsequential. My perspective is simply that a zero interest rate is an emergency footing, and if we are no longer in a state of emergency, then we should no longer be on an emergency footing."
Temporary rate hike could boost the economy -Crudele/NY Post
"The Fed is like a firefighter holding a hose that’s hooked up to a dry hydrant. The firefighter and the Fed may look powerful standing there, but they are helpless to fight the next inferno. The Fed, essentially, needs to raise interest rates so it can lower them the next time there’s a problem. Even if the Fed raised rates in September only to lower them again in December, the move would be seen by some as worthwhile....I’ve said for years the employment numbers put out by the Labor Department are nonsense. The unemployment rate, which dropped to 5.1 percent in August, is particularly bogus for a number of reasons I’ve already explained to death. While that’s still all true, the Fed can ignore the smell coming out of these statistics, hold its collective nose and use the sharp decline in the jobless rate as its excuse to raise rates."
Precious Metals Best Bet Amid Market Turmoil -NewsMax
"Marc Faber, Editor and Publisher of the Gloom, Boom, and Doom Report, suspects that markets 'may be at the end of a colossal asset inflation.' He recommends gold and precious metals as 'the least-bad asset class for investors to consider.'....Jim Grant, of Grant’s Interest Rate Observer, tells Kelly Evans he thinks Janet Yellen will adopt a 25bp hike 'to change the subject,' and he goes on to attack 'the management of interest rates and asset prices by our well-intended but not omniscient masters of the Fed....We’re all living in a valuation hall of mirrors. Credit is comprehensively, almost universally mispriced.'” Marc is spot on that U.S stocks represent a prime example of 'colossal asset inflation' and that precious metals are the best bet. We also agree with Jim Grant's perspective that Wall Street's 'hall of mirrors' valuation is has caused mispricing of virtually all assets. Read more in The Timeless Truth About Gold & Silver.
9.16.15 - GOLD: IT'S ABOUT TIME
Gold last traded at $1,119 an ounce. Silver at $14.88 an ounce.
NEWS SUMMARY: U.S. stocks traded higher Wednesday despite rising Fed uncertainty and falling consumer prices. Meanwhile, precious metal prices traded sharply higher as the U.S. dollar weakened on speculation the Fed will do nothing.
U.S. Consumer Prices Decline -Fox Business
"The Labor Department said on Wednesday its Consumer Price Index slipped 0.1% last month, the first decline since January, after edging up 0.1% in July. In the 12 months through August, the CPI rose 0.2% after a similar gain in July....Signs of a disinflationary trend reasserting itself are in stark contrast with a rapidly tightening labor market and highlight the dilemma Fed officials face as they contemplate raising interest rates for the first time in nearly a decade....The Fed tracks the personal consumption expenditures price index, excluding food and energy, which is running well below the core CPI." In a more perfect economic world falling prices would be celebrated by consumers. But in today's upside-down world of Fed manipulation, falling prices are feared. As for real-world inflation, ShadowStats.com reports the annualized consumer inflation rate currently at 3.8%; over twice the 1.8% the official rate the government reports! To learn more about how government uses inflation, read The Inflation Deception (free e-version!)
Gold rises after unexpected drop in U.S. inflation -Reuters
"Gold rose on Wednesday after data showing a surprise drop in U.S. inflation last month dented expectations that the Federal Reserve will decide to increase interest rates for the first time in nearly a decade this week. 'CPI came in weaker than expected,' Heraeus trader Alexander Zumpfe said. 'Markets took that as a kind of confirmation that the Fed won't hike interest rates tomorrow, since there is no reason inflation-wise.'....A little over half the 80 economists polled by Reuters over the last 24 hours said they expect the Fed to hold fire slightly longer on a rate rise, after only last week narrowly predicting the Fed would pull the trigger on Thursday." Gold is money, which represents your time and your life, as George Gilder has brilliantly written in The 21st Century Case For Gold ..."Gold can function as money because it operates outside the financial economy as an index of the time it takes to extract it from the earth. The cost of extraction rises almost in proportion to the advance of mining technology. Gold thus cancels capital and technology and becomes almost a pure measure of time. Only gold money is rooted in time."
Inside Janet Yellen's Brain At 4am... -Zero Hedge
"Will Janet Yellen proudly put the Fed on the side of the angels, announcing that she and her crew have decided to move the Fed’s key interest rate to a more normal level… regardless of how much it costs the cronies? No, she won’t. Once you begin manipulating markets, it’s a hard habit to break. After nearly seven years of emergency financial policies, we are now in a permanent emergency...'What if they say it’s my fault? What if they call it the Yellen Depression? Oh, no... It’s not fair... It’s not fair... Boo-hoo... sob... sob... I should have stayed at Harvard. I’d have tenure. I’d have a nice pension. George and I could go the Martha’s Vineyard in the summer. It would be such a nice life.'" We agree, Yellen and the Fed are facing a bad brain-freeze, as covered in The Biggest Bank Heist in History.
When the Fed raises rates, here's what happens -Jeff Cox/CNBC
"A rate hike will come and the bull market will stumble, bond yields will climb and the economy will slip into a recession. This we know. What we don't know is how long all of that will take and how long it will last. For the economy specifically, history offers little guide about timing. A recession has come as quickly as 11 months after the first rate hike and as long as 86 months....Recessions are a fact of economic life, but rate hikes often help them along. In the current case, the Fed is facing some conditions that did not exist before and could hasten a recession. Most notably, gross domestic product will be near its lowest point ever for a Fed rate hike."
9.15.15 - FOOLED BY THE FED?
Gold last traded at $1,102 an ounce. Silver at $14.32 an ounce.
NEWS SUMMARY: U.S. stocks rallied Tuesday as disappointing economic data had traders wondering how the Fed’s rate decision Thursday might be affected. Meanwhile, the U.S. dollar traded mixed and precious metal prices eased back slightly.
Banks May Not Offer Businesses Cyber Fraud Protection -NPR
"Cyberthieves steal hundreds of millions of dollars a year from the bank accounts of U.S. businesses. And many business owners are surprised to find out their bank is not obliged to make them whole. Dr. David Krier's Volunteer Voyages is one of the victims. Krier says he lost over $14,000 through fraudulent withdrawals from his business account, and he says his bank 'refused to cover any of my losses.'...tips to businesses: educate your employees, change passwords often, require two-person approval for fund transfers, and dedicate a single computer to be used only for financial transactions." For more tips to deal with the unsafe world of 21st century banking read DON'T BANK ON IT!... "Government agencies, corporations and banks could already have dormant 'mole' programs undetected in their computer networks. Hackers and foreign agents can activate such moles from far away at an opportune, coordinated moment to bring down entire major banks or our banking system.” (Page 26)
Why Would Anyone Seriously Care if Fed Raises Interest Rates? -Tamny/Forbes
"For six years the Fed has kept the rate at which its member banks lend to one another at zero. To members of the media, the Fed’s zero rate has signaled 'easy credit.' The Fed embraces the media’s confusion about its supposed power, but then members of the Fed reside in an equally confused world plainly untouched by reality. You see, contrary to what members of the Fed want us to think about their ability to decree credit 'cheap' or 'tight,' the market-disciplined world marches to the beat of a completely different drum. Thank goodness. No matter what credit conditions the Fed tries to dictate, the actual cost is different for everybody....The fact that the Fed still matters at all to investors is the best reason of all to either greatly reduce its mandate, or end it altogether." Well said. The larger issue is that the Fed continues to stunt U.S. economic and wage growth and punish savers, as covered in The Biggest Bank Heist in History.
Is Gold Still a Safe Haven? -Hambro/Bloomberg
"One of the best interviews we have seen about gold in recent weeks took place last week. It was a Bloomberg interview which involved Peter Hambro being interviewed by Francine Lacqua and Manus Cranny on Bloomberg Television’s 'The Pulse'. (Watch) Some of the great quotations from this refreshing interview included: 'I believe it [gold] is [still the safe haven]… [This gold coin] 2000 years ago buys the same amount of bread today as it did when Jesus Christ was born. That is a real safe haven asset'...'That is real gold. The alternative is paper gold...other people's promises. That is nobody's promise. This is real. You can feel the weight of it. It’s lovely'…'The price of gold doesn't vary, it's the price of the promises that vary'.... 'Gold is what I call wealth insurance. You have health insurance, fire insurance - this is wealth insurance…'" Discover why your golden years require a new golden strategy, read The Timeless Truth About Gold & Silver.
What are you going to do with your RTA? -MillerOnTheMoney
"As my peer group transitioned from the work force to retirement we spent many hours discussing how to use our RTA (Remaining Time Available). What are your priorities? How do you want to spend your time? The term 'Bucket List' was highlighted by the movie and symbolizes doing things you always wanted to do, before you kick the bucket....Putting together a bucket list is rearranging priorities. The dreams may have been prioritized as 'maybe someday' and now move up the ladder to 'why not?'....The movie, 'Bucket List' was totally unrealistic. I resented the idea that a person has a bucket list and, after checking off the last item, it is time to die. The heck with that! Check one off the top and add another item to the list. One friend said, 'I don’t want to die, while I am still alive!' Planning fun adventures, then enjoying them is what keeps us young." Read Dennis Miller's latest Feature Commentary: Where Retirees Should Invest Today
9.14.15 - STOCKS FALL AMID FED RATE FEARS
Gold last traded at $1,107 an ounce. Silver at $14.36 an ounce.
NEWS SUMMARY: U.S. stocks fell Monday as uncertainty over the Federal Reserve’s policy decision on Thursday made investors nervous. Meanwhile, the U.S. dollar traded modestly higher and precious metal prices steadied.
US interest rate rise could trigger global debt crisis -Telegraph
"Debt ratios have reached extreme levels across all major regions of the global economy, leaving the financial system acutely vulnerable to monetary tightening by the US Federal Reserve, the world's top financial watchdog has warned....The Bank for International Settlements said the wild market ructions of recent weeks and capital outflows from China are warning signs that the massive build-up in credit is coming back to haunt, compounded by worries that policymakers may be struggling to control events....'We are not seeing isolated tremors, but the release of pressure that has gradually accumulated over the years along major fault lines,' said Claudio Borio, the bank's chief economist." Will the Fed heed the nearly universal international warnings not to raise interest rates? No one knows yet; but if the Fed does decide to lift rates by a symbolic .25% in September, we doubt the world will fall apart.
Fears grow over US stock market bubble -Financial Times
"A growing number of investors believe that US stocks are overvalued, creating the risk of a significant bear market, according to research by Yale University market scholar Robert Shiller. The Nobel economics laureate told the Financial Times that his valuation confidence indices, based on investor surveys, showed greater fear that the market was overvalued than at any time since the peak of the dotcom bubble in 2000. 'It looks to me a bit like a bubble again with essentially a tripling of stock prices since 2009 in just six years and at the same time people losing confidence in the valuation of the market,' he said." Confidence is the only thing holding the U.S. stock market and U.S. dollar at such unrealistic highs, as Mr. Smith covers in What's Next For The Dollar?
Govt Shutdown Hinges on Planned Parenthood -Fox Business
"The threat of a government shutdown is looming over Capitol Hill once again, and the effects could be as far-reaching as impacting the Fed's rate-hike timeline. If the government shuts down at the end of September it’s because of Planned Parenthood....If you’re scratching your head trying to make the connection, you’re likely not alone. But there’s a reason why the sometimes-controversial non-profit is dividing Congress. Undercover online videos surfaced over the summer allegedly showing Planned Parenthood executives bargaining to sell aborted fetal tissue for profit....Thus: Any agreement for a continuing resolution, stop-gap or temporary appropriations legislation to keep the government funded past September 30 – the end date for an existing CR – is tied to defunding Planned Parenthood."
9.11.15 - ECONOMIC UNCERTAINTY RISING
Gold last traded at $1,103 an ounce. Silver at $14.50 an ounce.
NEWS SUMMARY: U.S. stocks gyrated Friday as fixation on the Fed meeting next week intensifies. Fresh U.S. economic data showed wholesale inflation was flat and consumer sentiment falling. Meanwhile, the U.S. dollar retreated and gold prices held above $1,100 an ounce.
Fed to dominate week of central bank meetings -Reuters
"Guessing whether the Fed hikes rates on Thursday or opts for a later date, perhaps December, is something of a futile exercise because even the rate setters appear to be wavering and the decision will probably come down to the wire....The big inflation miss and a modification of quantitative easing are just the latest in a long list of troubles for central banks around the globe as developed nations struggle with weak growth and anemic inflation. 'Are central bankers losing credibility? Preliminary results from our survey show that 68 percent of investors believe so,' RBS said in a note to clients. 'Yet, we are stuck in a world where central bankers' words will determine investment decisions, often beyond fundamental reasoning.'" Discover how to protect your assets no matter what the Fed decides to do, read The Biggest Bank Heist in History.
The Islamist Menace Shadowing This Sept. 11 -Giuliani, Wall Street Journal
"The terror threat is growing, but our nation's leaders are even deeper in denial than they were 14 years ago....U.S. military and intelligence capacity must not be drastically cut as proposed by this administration. It should be quantitatively increased and strategically improved....It would be a mistake to conclude that 9/11 is now simply a part of the nation's history, like Pearl Harbor. Because there is one big difference. The causes and hatreds that created 9/11 are still with us, and the terrorists have enlisted members who are even more diverse, cunning and determined....On this 14th anniversary of the worst foreign attack on U.S. soil, let us honor our fallen on Sept. 11 and in Iraq and Afghanistan by pursuing a policy reflecting America's true purpose-to offer hope for the future of mankind and, in particular, for the freedom and dignity of people who have lived under deadly intimidation for decades." Swiss America salutes our first responders and military personnel who risk their lives daily so that we may live in peace.
Why the Fed won't hike next week: Deutsche Bank -CNBC
"While Wall Street frets about a potential Fed rate hike next week, one prominent economist has a simple message for investors: Relax. Nothing is going to happen. 'I would say in light of a variety of different events, most notably the fragility and volatility in the global equity markets, the Fed is most likely to pass on September,' Joe LaVorgna said Thursday.....If the market turbulence and global worries persist, LaVorgna said there could very well be no hike at all." Agreed. The Fed now finds itself cornered in a lose-lose situation.
Where retirees should invest in today's uncertain markets -MillerOnTheMoney
"There are lots of 'theories' about investing, but one fact when it comes to investing retirement money. The fact is your nest egg has to last you and your spouse for the duration. While making money is a factor, avoiding losing it to the point of having to alter your lifestyle or go back to work trumps all....Right now the investment options are shaky. Cash. Congratulate yourself if you got stopped out of some positions and now have cash to deploy....Bonds. Bond yields stink....Stocks. Don't fall for the buy and hold mentality....Gold and precious metals. Famed pundit Marc Faber says, 'There Is No Safe Asset Anymore, so Buy Gold and Precious Metal Stocks.' Gold should be part of every investor's core holdings to protect against inflation....I believe success is when preparation meets opportunity." Sage advice from one of Marketwatch's "Retirementors". Learn more about why gold offers both financial preparation and opportunity, read The Timeless Truth About Gold & Silver.
U.S. Consumer Sentiment Falls to 1-Year Low -Fox Business
"U.S. consumer sentiment dropped to its lowest level since September last year, a survey released on Friday showed. The University of Michigan's preliminary September reading on the overall consumer sentiment index slid to 85.7, compared with the final reading of 91.9 in August. September's consumer sentiment index was the lowest since September 2014. The survey's barometer of current economic conditions fell to 100.3 from 105.1 in August. It was below a forecast of 103.6. The current conditions reading was the weakest since October 2014."
9.10.15 - MARKET VOLATILITY, GLOBAL DEBT RISING
Gold last traded at $1,109 an ounce. Silver at $14.64 an ounce.
NEWS SUMMARY: U.S. stocks rose Thursday in choppy trading as investors mulled over mixed economic reports ahead of next week’s Federal Reserve meeting. Precious metal prices rose on bargain hunting as the U.S. dollar weakened.
Does Lack of Fed Clarity on Rate Hike Timing Speak for Itself? -Fox Business
"For months Federal Reserve policy makers have assured investors, analysts and economists that when the time comes to raise interest rates for the first time in nearly a decade the announcement won’t come as a surprise. But one week before the Fed is scheduled to make a decision on a rate hike there is no clear consensus on what direction central bankers are leaning. Meanwhile, influential Fed figures like Chair Janet Yellen, Vice Chair Stanley Fischer and New York Fed President William Dudley have given no indication of which way they’re leaning. Consequently, despite their earlier claims, whatever decision the members of the policy-setting Federal Open Market Committee announce next week will come as a surprise." The truth is 'Fed clarity' is really an oxymoron. If you want to know what's coming next from the Fed, read The Biggest Bank Heist in History.
Why Central Banks Are Pressing Investors To Hold Gold -Market Oracle
"In 2012, a discussion about the possibility of capital controls in a Western country seemed like a conspiracy theory. In the meantime, they became a reality in both Cyprus and Greece. Could a major Western country be next?....Between 2007 and 2014, the total global debt increased by over 40%. Governments, financials, corporations and households have all increased their absolute debt levels in the last few years...total global debt has reached $200 trillion. World global output measured by the gross world product was around $76 trillion in 2013. This means that on a global scale we have a debt ratio of approximately 270% of the total yearly world output....The reason why I personally hold gold is because I see it as an insurance against our current monetary system. It is one of the only assets I know that has no sort of counterparty risk and has been considered to be of value for thousands of years....As governments worldwide become increasingly desperate due to their dire financial circumstances, I believe that they will resort to increasingly tyrannical means to access the wealth of their citizens. It is essential to keep at least a part of your assets far away from the banking system, which I consider to be an 'extended arm' of the government." Authors Craig Smith and Lowell Ponte agree it's very important to hold some assets outside of the banking system, which is detailed in their latest book DON'T BANK ON IT!
Government Employees Outnumber Manufacturing Employees 1.8 to 1 -CNS News
"Those employed by government in the United States in August of this year outnumbered those employed in the manufacturing sector by almost 1.8 to 1, according to data published by the Bureau of Labor Statistics. There were 21,995,000 employed by federal, state and local government in the United States in August, according to BLS. By contrast, there were only 12,329,000 employed in the manufacturing sector. There were more Americans employed in manufacturing in 1941 in the months leading up to the Japanese attack on Pearl Harbor than are employed in manufacturing in the United States today, according to data published by the Bureau of Labor Statistics."
Nothing Impossible About a Gold Standard -Forbes
"The United States embraced the principle of a currency whose value was linked to gold from its founding in 1789 until 1971 - a period of 182 years. During this time, from the humblest beginnings, it became the world’s wealthiest and most powerful state....You can wish and pray and hope all you want for a gold standard monetary system. But, unless someone knows how to run it properly - using the principles outlined here by economists Milton Friedman and Robert Mundell - it will always remain a wish." Instead of hoping the U.S. can get back on a gold standard, learn how easy it is to put yourself on a personal gold standard starting today in The Timeless Truth About Gold & Silver.
9.9.15 - FED'S ZERO INTEREST CONSEQUENCES
Gold last traded at $1,102 an ounce. Silver at $14.57 an ounce.
NEWS SUMMARY: U.S. stocks fell Wednesday after data showing a record rise in job openings boosted Fed rate hike fears. The U.S. dollar rose while gold prices tested $1,100 an ounce amid bearish "outside market" forces.
Quantitative easing experiment is ending in global recession -TheConverstion
"Recession. Recession. Recession. In Canada, Belgium, Czech Republic, Italy, Japan, Portugal, Taiwan, Slovenia, the Netherlands, Brazil and Russia. They’ve all either had recent recessions, are in deep danger, or have one now. Who’s next? The BRICS aren’t looking too flash. Brazil and Russia are in recession. China's stock market has wobbled disconcertingly. Even the $24 billion the panicked Chinese central bank threw at the markets wasn’t enough to stop Beijing’s brokers from running for their financial lives. Speaking of BRICS, South Africa is also in deep, deep trouble. Only India appears oblivious to the carnage wracking world markets." Global recession is one of the four outcomes discussed in The Biggest Bank Heist in History.
End Of The Fed's "Interest Rate Magic Show" Looms -ZeroHedge
"Over the last five years, we have developed an unhealthy obsession with the Federal Reserve, in particular, and central banks, in general, and there is plenty of blame to go around. Investors have abdicated their responsibilities for assessing growth, cash flows and value, and taken to watching the Fed and wondering what it is going to do next, as if that were the primary driver of stock prices. The Fed has happily accepted the role of market puppet master, with Federal Bank governors seeking celebrity status, and piping up about inflation, the level of stock prices and interest rate policy. We don't know what will happen at the FOMC meeting, but we hope that it announces an end to it's 'interest rate magic show.'"
World Bank chief economist warns Fed to delay rate rise -Financial Times
"The US Federal Reserve risks triggering 'panic and turmoil' in emerging markets if it opts to raise rates at its September meeting and should hold fire until the global economy is on a surer footing, the World Bank’s chief economist has warned. Rising uncertainty over growth in China and its impact on the global economy meant a Fed decision to raise its policy rate next week, for the first time since 2006, would have negative consequences, Kaushik Basu told the Financial Times."
Congress Owes Us a More Accountable Fed -RealClearMarkets
"The Federal Reserve is an institution which represents tremendous systemic risk, more systemic financial and economic risk than anyone else. Actions of the Fed, based on the debatable theories and guesses of a committee of economists, can create runaway consumer price inflation, runaway asset price inflation, force negative real returns on the savings of the people, reduce real wages, stoke disastrous financial bubbles which lead to financial collapses, distort markets, and in general, create financial instability-all, of course, in the name of pursuing stability. The Fed has done or is doing all of these. It is high time to make the Fed more accountable. Senator Richard Shelby's Financial Regulatory Improvement bill, passed by the Senate Banking Committee last May, sets a promising direction for this essential reform."
Puerto Rico's Capital Control Fallout -Newsbtc
"Puerto Rico has recently used legislation to force capital controls. The country has imposed a 2% fee on any money transmission, forcing Paypal’s to pull out of the country. Following an attempt to start capital controls, Puerto Rico government passed a law that forces all peer-to-peer transactions to be taxable at a 2% rate. With this move the country’s government is looking to extract any additional sources of income from Puerto Rican citizens. This was the main reason leading the international online financial institution, PayPal to abandon the country. With the new imposed fees PayPal decided to leave Puerto Rico next month." In DON'T BANK ON IT! authors Craig Smith and Lowell Ponte discuss the rise of capital controls worldwide.
9.8.15 - FED FAILING TO CREATE CONFIDENCE
Gold last traded at $1,121 an ounce. Silver at $14.75 an ounce.
NEWS SUMMARY: U.S. stocks rallied Tuesday following the Labor Day holiday despite downbeat China trade data amid upbeat German data. Meanwhile, the U.S. dollar drifted lower and precious metal prices steadied.
The Fed Wants to Raise Rates, But It Can't -New York Post
"Wow, the Fed is really screwed! The central bank will have to decide in two weeks whether to raise interest rates for the first time in nearly a decade. But the decision is one of those brain twisters with no right answer: The Fed wants to raise rates, it must raise rates, but it is becoming increasingly impossible to raise them. If Janet Yellen and her gang of quick-talking but dim-witted colleagues had been reading my columns, they would have known that the August employment report released Friday was going to be both disappointing and a problem for them."
Why The Fed Has Failed To Create Economic Confidence -Fox News Video
Your World With Neil Cavuto asks author and Swiss America chairman Craig Smith whether China or weak U.S. jobs data will prevent the Fed from raising interest rates September 17th. "Are we the problem?" asks Cavuto. Smith says yes, we have the most anemic recovery ever. "This Federal Reserve has done more, in combination with the Obama administration with high taxes, regulations and burdensome things like Obamacare, to keep us at a 1-2% growth rate," says Smith. Cavuto points out that China is following the path of the U.S. and now the chickens are coming home to roost. Will the Fed raise interest rates slightly this year? Read The Biggest Bank Heist in History.
U.S. confidence in the economy plunges to 11-month low -Business Insider
"Americans' confidence in the economy continues to slide. In fact, it's down to an 11-month low. Gallup's weekly economic confidence poll shows that US Economic Confidence Index fell three points, down to -17, following a three-point decline the previous week, amid a jumpy stock market and stuttering China....The index, which combines views on current economic conditions and expectations for the future, has been on a generally downward trend since the beginning of this year." If confidence continues to fall, will the dollar also fall? Read What's Next For The Dollar?
A stock ploy killing the US economy -CNBC
"Paper profits on repurchased stock prices has fooled the market. Productivity lags. Corporate investment in fixed assets is at its lowest level in 60 years. Not every investment vehicle lauded by billionaire investors is good for the little guy. Take stock buybacks. Carl Icahn loves them. Warren Buffett is a big fan. But these financial instruments come with risk - and not much long-term reward....According to Goldman Sachs, stock buybacks will surge by 18 percent in 2015, exceeding $600 billion and accounting for nearly 30 percent of total cash spending."
Stocks & Bonds Have Never Been This Expensive -Zero Hedge
"Thanks to the new normal world of extremely loose monetary policy and extraordinary accumulations of financial assets by Central Banks, Deutsche Bank finds that we live in a period not of selectively expensive global asset prices, but of record 'expensiveness' across developed market bonds, stocks, and real estate....And, based on Deutsche's valuation metrics, bonds and equities alone are at their highest ever combined valuations when aggregated across these 15 countries."
9.4.15 - FED FEAR SPARKS SELL-OFF
Gold last traded at $1,121 an ounce. Silver at $14.54 an ounce.
NEWS SUMMARY: U.S. stocks fell sharply Friday amid mixed August jobs data which investors fear could result in a Fed rate-hike this month. The U.S. economy added 173,000 jobs in August, below the estimate of 220,000. Meanwhile the U.S. dollar weakened and precious metal prices steadied.
What's the real unemployment rate? -CNBC
"Many economists look beyond the 'main' unemployment rate to other figures that can give a more textured view of the economy. On jobs day, the Bureau of Labor Statistics puts out a slew of data that show various aspects of the nation's employment situation. One of those pieces of data is the U-6 rate. The BLS defines U-6 as 'total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force,' plus all marginally attached workers. The U-6 rate dipped in August to 10.3 percent, the lowest since June 2008." In DON'T BANK ON IT! (Page 163) Craig Smith and Lowell Ponte explain the problem, "Only 101 million Americans now have full-time jobs, and of these only 86 million work in the private sector where their paycheck does not come from other people’s taxes. This is the lowest full-time job participation rate since Jimmy Carter...These full-time workers are the ones who make the goods and pay the majority of personal income taxes, who pull the wagon that everybody else rides in."
Goldman: "No Rate Hike In September" -Zero Hedge
"While we have exposed the ugly under-belly of today's jobs data, mainstream media is spinning it as a 'Goldilocks' report with enough hits-and-misses for every hawk or dove. The market's initial reaction signals rising expectations of a September rate hike but, as Goldman's Jan Hatzius explains, they continue to expect the FOMC to keep policy rates unchanged at the September 16-17 meeting." Will the Fed lift interest rates slightly this year to save face? Read The Biggest Bank Heist in History.
G20 promises transparency as global economy disappoints -Reuters
"World financial leaders will agree to calibrate and communicate monetary policy carefully to avoid triggering capital flight, but will not call an expected U.S. rate rise a risk to growth, a draft communique showed on Friday. Many emerging market economies are concerned that when the U.S. Federal Reserve raises borrowing costs, investors will withdraw from other markets and buy dollar assets, weakening other currencies and creating turbulence as capital flees. Officials from emerging markets wanted the communique from finance ministers and central bank governors of the Group of 20 biggest economies, meeting in Turkey, to say that a U.S. rate rise now would be a risk to growth."
Big banks may see 20 percent fall in revenue -NY Post
"Big investment banks could see revenue fall by as much as 20 percent in the third quarter compared with the previous three months, as choppy market conditions hurt trading and deal activity, JPMorgan Chase said in a report Thursday. Markets around the world went haywire in August after China devalued its currency. The move sparked a global sell-off as investors worried that the world’s biggest economy was slowing....'Recent strong turnover, especially in equities, could decline materially once markets settle - not just in Asia but globally,' JPMorgan analyst Kian Abouhossein wrote in a research note to clients. Stock trading desks should brace for the worst - as much as 20 percent less than last quarter - after the spike in trading volume recedes, he said."
9.3.15 - THE BLIND (Fed) LEADING THE BLIND (Chinese)
Gold last traded at $1,124 an ounce. Silver at $14.70 an ounce.
NEWS SUMMARY: U.S. stocks traded mixed Thursday despite upbeat economic data which boosted the odds of a Fed rate hike in September. Meanwhile, the U.S. dollar rallied on the data and precious metal prices drifted slightly lower.
U.S. Wages Falling Backward -New York Times
"Despite steady gains in hiring, a falling unemployment rate and other signs of an improving economy, take-home pay for many American workers has effectively fallen since the economic recovery began in 2009, according to a new study by an advocacy group that is to be released on Thursday....'Stagnant wages are a problem for everyone at this point, but the imbalance in the economy has become more pronounced since the recession,' said Irene Tung, a senior policy researcher at the National Employment Law Project and co-author of the study....Friday’s jobs report is especially significant because it is the last one before Federal Reserve policy makers meet in mid-September to decide whether to go ahead with or delay their long-telegraphed move to raise short-term interest rates from near zero." Discover why the U.S. is now trapped by our government's zero growth policy decisions in The Biggest Bank Heist in History.
China Stock Manipulation Follows Failed Fed Model -Fox Business
Swiss America Chairman Craig R. Smith was a guest on Fox Business with Cheryl Casone discussing what China learned from the U.S. about boosting their stock market. "The Fed in November 2010 turned on the spigot and we watched the Dow rise from 13,000 to 17,000 in the next four years, then to 18,000 this year," says Mr. Smith. "China has $3.5 trillion in reserves which they can use to prop up the stock market." China may think manipulation makes their stock market look attractive but that same strategy has not worked in the U.S. Mr. Smith reminds viewers that China is still a communist nation who claims to want a free market but only on its terms.
Banks Are Perilously Exposed to China -Bloomberg
"Until very recently, large exposure to China was seen as an advantage, a toehold in the market of the future. Now it's seen as a risk, and some of the world's most advanced companies seem to be on the losing side of a huge bet. The danger may be overstated in some cases and understated in others....Last month, Goldman Sachs created a list of S&P 500 stocks with the most exposure to China. Inexplicably, Apple, which generates more than a quarter of its revenue from Greater China, is not on the list. Nonetheless, all but three of the 20 companies listed are in the tech sector." As covered in DON'T BANK ON IT! ... underfunded fractional reserve banks in China and worldwide "has the potential to turn every rumor or problem into a crisis."
Bank Supervisors should not tell truth about bank health -Reuters
"Banking supervisors should withhold some information when they publish stress test results to prevent both bank runs and excessive risk taking by lenders, according to a paper co-authored by a Bundesbank economist....European banking authorities are due to carry out a fresh round of stress tests next year as they try to restore investor and depositor confidence in the continent's banks after the financial crisis....The paper, presented at a conference in Mannheim last week but yet to be published in its current form, says stress tests should be used to influence depositor behavior and warns against giving too much away." So much for truth in lending...and reporting.
9.2.15 - ECONOMIC FACTS TRUMP CLIMATE THEORIES
Gold last traded at $1,133 an ounce. Silver at $14.66 an ounce.
NEWS SUMMARY: U.S. stocks rebounded Wednesday as traders brushed off disappointing jobs data and China fears temporarily subsided. Meanwhile, the dollar rebounded and precious metal prices consolidated recent gains.
Stocks Sending Recession Warning -Fiscal Times
"The bad omens are building in the stock market. Set aside the situation in China, where data released Tuesday showed manufacturing activity dropped last month to a three-year low and reached contractionary territory - the given reason for Tuesday’s market tumble. Forget for a moment about the Federal Reserve, which seems committed to raising interest rates this month for the first time since 2006. The stock market itself is warning of big trouble. The technical damage to stock prices has been severe. The S&P 500 has suffered its first 'Death Cross' - a plunge of the 50-day moving average below the 200-day moving average, a sign of lost medium-term momentum - in four years. The long-term trend is at risk, as the index closed Monday’s session below its 12-month moving average, a strong predictor of bear markets....Deutsche Bank's chief strategist Binky Chadha recently wrote to clients that equity market corrections of 10 percent or more are "rare outside recessions," with only 13 occurrences in the last 65 years in the context of a falling unemployment rate."
Putin "Aims To Eliminate US Dollar From Trade" -Zero Hedge
"Something is afoot as de-dollarization escalates around the world. With CNY/RUB trading volumes up a stunning 400% year-over-year to record highs, and hot on the heels of China's (and much of EM Asia) dumping dollar assets, Russian President Vladimir Putin has just unleashed a new bill aiming to completely eliminate the US dollar from the trade of goods....But that’s just the beginning of the end for the US dollar. Amid a major meltdown in Chinese stock markets the People’s Republic sold off billions in dollar assets last week in what was reported to be an effort to stabilize their collapsing financial markets." For the full story about the coming global assault on the U.S. dollar, read What's Next For The Dollar?
Surging ranks of America's ultrapoor -Moneywatch
"By one dismal measure, America is joining the likes of Third World countries. The number of U.S. residents who are struggling to survive on just $2 a day has more than doubled since 1996, placing 1.5 million households and 3 million children in this desperate economic situation. That's according to '$2.00 a Day: Living on Almost Nothing in America,' a book from publisher Houghton Mifflin Harcourt that will be released on Sept. 1."
Canada officially enters recession -AFP
"Reeling from low oil prices, Canada fell into a recession in the first half of the year, government data confirmed Tuesday, putting Conservative Prime Minister Stephen Harper on the defensive in the run-up to October elections. According to Statistics Canada, the economy contracted 0.5 percent in the second quarter after retreating 0.8 percent in the previous three months....It is Canada's second recession in seven years and it is the only Group of Seven nation in economic retreat. The figures are the weakest since the 2008 global financial crisis."
9.1.15 - STOCKS FALL INTO THE DANGER ZONE
Gold last traded at $1,139 an ounce. Silver at $14.62 an ounce.
NEWS SUMMARY: Stocks indexes worldwide slid 2-3% Tuesday on China fears. Meanwhile, precious metal prices rose on safe haven buying amid a falling commodity prices and a weak dollar.
Weak Global Manufacturing Data Wallop Wall Street -FoxBusiness
"Wall Street kicked off September on a sharply negative note as China growth worries slammed global markets yet again. All ten S&P 500 sectors were in negative territory, with energy falling the most, dropping 3.13% in recent action....In the U.S., a gauge on factory activity from the Institute for Supply Management saw a bigger-than-expected drop in August to 51.1 from 52.7 in July. Overnight, data from China showed the nation’s manufacturing sector slipped to a three-year low and back into contraction territory for the first time in six months."
September 2015: We Officially Enter The Danger Zone -Zero Hedge
Michael Snyder of The Economic Collapse blog, writes ... "When I issued my first ever 'red alert' for the last six months of 2015 back in June, I was particularly concerned with the months of September through December, and not just for economic reasons. All of the intel that I have received is absolutely screaming that big trouble is ahead....Throughout history, there have only been 11 times when the S&P 500 has declined by more than five percent during the month of August. When that has happened, the stock market has almost always fallen in September as well....So how far could stocks eventually fall? John Hussman is projecting that we could ultimately see the market decline by more than 50 percent....When things start completely falling apart in this nation, millions upon millions of Americans will complain that nobody warned them in advance about what was coming. Well, I am warning you right now."
Gold Prices Higher as Possible Fed Rate Rise Seen Later -Wall Street Journal
"Gold prices were higher on the London spot market Tuesday, as the potential timing of an impending U.S. interest rate raise continued to move into the long grass. Now, market consensus has shifted to focus on December or beyond. 'Gold has been closely tracking changes in Fed policy expectations of late and we expect this influence on price action to continue up ahead,' said UBS. 'The link is likely going to become more acute in the next two weeks as the September FOMC [Federal Open Market Committee] meeting draws near.'" The Fed is now trapped in a zero interest, zero growth world. How will it all end? Read The Biggest Bank Heist in History.
How America Can Restore the Gold Standard -Breitbart
"Judy Shelton, Ph.D. closed out the conservative Jackson Hole Summit this past weekend by offering a practical pathway to re-restore the U.S. dollar as a gold-backed currency without economic disruption by having the Fed pledge about 7 percent of America’s gold in Fort Knox as collateral to issue gold-convertible Treasury Bonds....She believes Americans want their money to function as a useful tool for measuring value, not as the means through which government attempts to implement economic and social policy....Dr. Shelton suggests that the U.S. Treasury issue the equivalent of 44 million ounces of 'gold-convertible' Treasury bonds. The bonds would be equivalent to regular 5-year Treasuries, but the face value would be redeemable at the option of the bondholder into dollars or a fixed amount of gold." Learn how to put yourself on a personal gold standard starting today in The Timeless Truth About Gold & Silver.
Abolish cash? You’d be losing a free society -Telegraph
"No one wants to stand in the way of technological innovation. But outlawing cash? That is surely a step too far....From today, France is banning the use of cash for transactions worth more than €1,000, or slightly more than £700. On one level, that is about combating crime and terrorism. But on another, it is also part of a growing movement among academics and now governments to gradually ban the use of cash completely. It is inefficient, oils the underground economy, and makes it harder for central banks to manage the economy, or so runs the argument. Much like gold, it is a 'barbarous relic', as some publications loftily dismiss it....The trouble is, cash is also incredibly efficient. And it is a crucial part of a free society. There is no convincing case for abolition." To better understand why governments worldwide have declared a "war on cash" read THE SECRET WAR.